I read with interest about the objective of Google.org below: Google.org projects are created for the purpose of addressing a social challenge and serving the public good. Our goal is to find engineering solutions to global challenges such as climate change, clean energy and global health. We focus on activities that take full advantage of Google’s engineering teams, global infrastructure and user-driven approach, while drawing on Google’s ability to innovate and scale. The purpose of this letter is to introduce three opportunities to engineer a :w3: networks that provide solutions to specific global challenges. The :w3: networks that may interest :googleorg: or its volunteers are: :listbegin: :united: is :w3: community to engineer global ... Read More
Archive for ‘Private equity and venture capital’
Mr George Soros Chairman, Open Society Institute I read with interest about your initiative to inspire a new way of thinking about economics. I studied Economics at University and maintain an avid interests in geostrategy. I appreciate the need for new ways of thinking and behaviours to deliver a more stable approach to economic management and financial markets. The purpose of this letter is to introduce three :w3: networks that encourage different modes of thinking and behaviour in democracy, financial markets and economic development: :listbegin: :edemocracy: (nationally) and :united: (internationally) to provide a new, community driven approach to democracy and global governance. This approach may be consistent with the objectives of the Open Society Foundations. :ed4:: ... Read More
Sir Richard Branson I read with interest about your initiative to Change the face of banking. There is also an enormous opportunity in re-casting the equity market, or investment banking industry, by applying social networking concepts to recast service delivery through the internet. An online industry network for the equity market can bring together companies, advisors and investors in an online space where they can collaborate and distribute information to facilitate the growth of small and medium enterprises. This is called :em3:. The purpose of this letter is to introduce the opportunity for Virgin of applying Equity Market 3.0 to fuel the growth of SME's and the :bvi: financial centre. The venture ... Read More
We need to build the Web 3.0 online social, industry and political networks on the critical path to Web 4.0 and pull in the next stage of financial markets, economic development, environmental sustainability, awareness, life, work and global governance. We need five online networks to solve the worlds problems by 2012 or we decline into conflict for generations. A global community could transform the world in 365 days by building the Web 3.0 online networks on the critical path to Web 4.0.
Copyright 2008 Open Networks Institute
The US system has collapsed. Failed financial firms are trying to convince the government to invest in them. The selling proposition? – “too big to let fail!” Understandably, the US congress are making further enquiries before writing a cheque for US$800 billion dollars. The US already terminally insolvent – even with unprecedented growth it can not repay its debts. Another US$800 billion won’t push it over the edge. It passed the edge a while back. A private receivership committee may have been formed in international markets. It will operate in “opaque channels”. A private online political network would be essential coordinate timely international activities amongst US creditors. The aspirations of the average American remain the same. They can be sold a “story” by mainstream media that permits further avoidance of debt repayments or justifies activities that acquire international “leverage”. An E-democracy online network and/or a US insolvency online network could be used to inform the US public. Maybe, they will assume responsibility, or maybe they would prefer not to know.
Copyright 2008 Open Networks Institute
We need to deploy five online political, industrial and social networks to avert disaster by 2012. Existing structures that rely on proprietary ownership of information, distribution channels, institutions and regional approaches are unable to solve our most pressing problems. Even if they could solve the problems, they are simply unable to coordinate a global endeavour in a rapidly closing timeframe. I had previously written that online networks could be delayed for up to 50 years by three epic battles. In some aspects of our global community, we can wait 50 years (and there is only an opportunity cost). However, for some specific problems, online networks need to be built, acquire a significant audience, and achieve their objective by 2012.
Copyright 2008 Open Networks Institute
Recent market turmoil is likely to eliminate the growth on stock exchange trading volumes. This growth had driven the growing revenue of stock exchanges in the last five years. Cost cutting has also contributed significantly to profitability. With growth unlikely and further opportunities for cost reduction minimal, stock exchanges will now seriously consider other strategic initiatives. Collaborative hubs are likely to be at the top of the list.
Copyright 2008 Open Networks Institute
Grant Thornton conducts an annual review of global growth markets. The report confirms a number of key trends. Capital markets are becoming more global and less regional, financial centres and specialising and certain stock exchanges are growing strongly. The most popular growth exhanges are in UK (AIM), Singapore, Hong Kong and Canada. Companies are becoming increasingly comfortable listing on foreign exchanges. This is contributing the the rise of specialist financial centres and global growth stock exchanges. The internet provides investors with transparency and direct access to information. Many stock exchanges and their closed information networks will struggle to find a niche in a globally connected world and free flow of information. Globally distributed online networks are likely to support growth companies and growth exchanges. Online networks will deliver the international companies, advisers and investors necessary to deliver liquidity to small exchanges that have been historically restricted to local business.
Copyright 2007 Open Networks Institute
Online networks which embody every facet of industrial, social and politcal aspects of our modern society are inevitable. They simply offer a superior way to interact and transact. The transition to a global community based around online networks will take six months, sixteen years or fifty years. The timeframe will depend upon the outcome of three epic battles. The battles are economic development vs geostrategy, community knowledge vs intellectual property, and online networks vs closed systems. Online industrial, political and social networks which are involved in these battles could be delayed for decades.
Copyright 2007 Open Networks Institute
Online industry networks could develop pharmaceutical products using open source principles. The Tropical Diseases Initiative is an example of an “open source” online network developing drugs for tropical diseases. It operates in a niche that is uneconomic or unviable for the pharmaceutical industry. It has been allowed to survive as a result. It demonstrates the potential of online networks in the pharmaceutical industry. A description of the Tropical Disease Initiative is provided below.
Copyright 2007 Open Networks Institute
The objectives of open source will change over time. As open source evolves and proves its capability, it will move beyond technology, beyond specific industries, to all other aspects of our society. This has been suggested in the past. However, existing organisations are not sufficiently motivated to apply advances in technology to promote development. Business, social and political entrepreneurs that establish online networks are likely to be the primary force for change.
This article outlines the first four stages of the development of online networks and the .Net boom. The objective of the online network in each stage is identified.
Copyright 2007 Open Networks Institute
China has one trillion dollars in foreigh reserves. This has been accumulated over many years of patient and successful exporting. China earns US$140 billion per year from the United States alone. Apparently, most of the one trillion dollars is invested in low-yielding US bonds. According to the IMF, China only needs 650 billion (65% of one trillion) to provide a safety buffer to operate its economy. China is considering reallocating US$350 billion into other investments that may provide a higher yield. With ongoing trade surpluses, it could invest one trillion dollars over the next yen years. China could become the world’s largest private equity investor.
Copyright 2007 Open Networks Institute
My previous article, Could an online social network deliver a virtual Silicon Valley to non-US economies? , I concluded that online social or industry networks could deliver the people and chain reaction that could spawn a new Silicon Valley. Financial centres currently specialises in specific niches. The rise of online industry networks and the rise of global capital markets will result in the rise of specialist financial centres. to an unprecedented scale. These centres will offer a specific regulatory environment tailored to specific companies in specific industries.
The repatriation of capital from the US over the next five years is a once in a 200 year event. Financial centres will need to determine their strategy and execute unequivocally if they are to secure a niche.
Copyright 2007 Open Networks Institute
The US consumer has driven much of the world economy for decades. It has been the perceived centre of the world for many industries. This is shifting. The primary source of global growth is likely to be Asia and Europe. This is a demographic reality as hundreds of millions of people in Asia enter the middle class. We only need to survive the shift from US centric to global.
Global capital will need to be looking for investment opportunities in Asia and Europe. Some markets are too small or have insufficient experience to deliver efficiency. The internet is likely to play a greater role in making the global capital market more efficient. Online industry networks will have an essential role to play in improving the allocation and efficiency of the capital allocation process.
Copyright 2007 Open Networks Institute
Industrial use of the internet is at an early stage. Existing corporates have used the internet to reduce costs by distributing information in a lower cost means. However, there are few examples of industries that have been completely transformed. The primary purpose of some major industries is distribution of information between market participants. They have significant economic rents for taking information from one market participant, mildly transforming it and delivering it to another market participant. The internet offers free (almost) distribution and the ability to find other market participants. These significant economic rents for distribution seem redundant in an age of the internet.
The next wave of internet companies are likely to target the distribution of information with a commercial value. These are Online Industry Networks. These networks will simply break down existing labour intensive interactions and coordinate them in the internet. They will rely significantly on user generated content and each user assuming responsibility for the distribution of that information. The current intermediaries are unwilling to sacrifice the high economic rents for distribution by adopting new business models. Only new entrants will apply new business models to take advantage of the internet to deliver products and services at significantly less cost, in less time and without needing to visit a specific retail location. These businesses will facilitate the exchange of information from people to business. Freelancers from all around the world will manufacture the information and deliver it directly to the end user. An online industry network promote products and services of the community. Service providers can find customers and customers can search for service providers. The consumers of the information may have access to products and services previously denied by closed distribution channels.
Copyright 2007 Open Networks Institute
Demographic shifts are the primary force that drive fundamental change. One billion consumers of US standards are to emerge. The United States will be an important market, but not the primary consumer or financial market in the world. Fiscal mismanagement by the United States will exacerbate the decline of the United States, but it is demography that will result in a more global market. The world will be “better” if the world can evolve from unsustainable debt funded consumption for the benefit of one country to global markets which share the benefits of economic development.
Copyright 2007 Open Networks Institute
If Moore’s law continues, then the cost of hardware will continue to decline and the ability to run a bank from a desert island a reality. The ability of software to take advantage of these hardware advantages may be limited. The advances in hardware and emergence of Utility computing will overcome much of the limitation. The result will be unpredented opportunity for entrepreneurs to create applications to global audiences in an increasingly service oriented world. Linux is likely to be best placed to take advantage of advances in hardware.
Copyright 2007 Open Networks Institute
Skype made internet telephony popular. It added video functionality to Skype last year. It has now added remote desktop or application sharing. As the worlds most popular internet telephone software, this will have a significant impact on the number of people that work together over the internet. Could Skype make application sharing popular just like it did for internet telephony?
Copyright 2007 Open Networks Institute
The electronic distribution of shareholder information will reduce costs and provide immediate delivery of information to shareholders. Electronic delivery may bypass established channels for information delivery and may accelerate disintermediation. However, the change is likely to be a universally positive for market efficiency with more direct communication between a company, its shareholders and advisers. It may also be possible that reduced transaction costs could lead to improved access to capital markets by smaller companies.
Copyright 2007 Open Networks Institute
There have been a few acquisitions of internet or technology companies at conventionally unjustifiable valuations. These have been the prominant aspect of a narrow technology boom (see .Net boom category). The price of oil and speculation in the oil market has, however, acted as a dampener on the extent of the technology boom. Higher oil prices have raised global growth concerns generally and speculative capital has been focussed on oil and resources. Speculation in oil has rewarded investors until recently. The recent “crash” in crude oil prices may reduce concerns about growth and speculative capital may look beyond oil investments. The technology boom is likely to gain further momentum as a result. I have extracted a few quotes to provide an insight the recent price decline and the delicate geostrategic and political balances in the market for oil. I encourage you to read the original article.
Copyright 2007 Open Networks Institute
A brief overview of the type of information required by a due diligence process can be downloaded here (word document). The document lists the necessary information in escalating stages of due diligence. I would encourage anyone going through a due diligence process to get the third party to qualify their interest in an opportunity as quickly as possible. This should be done by sending them a quality set of quality initial information. The due diligence process could easier if the business stored key business information in a single online platform. Please review the Online business and accounting system and the Templates Category for more information.
Copyright 2007 Open Networks Institute
The cashflow forecast template may be downloaded by clicking here . This is one of a series of templates provided to assist with business planning. Please read all posts in the Templates category . This template could be dynamically linked with the complex financial forecast template .
Read MoreI have provided some other templates to assist with preparing a business. The available templates are listed in the Templates category. I have always been reluctant to provide these templates. They are many years old and are a start to a four to six week process. Business plans are more art than science. It is difficult to provide a generic guide which successfully satisfies the specific needs of a company. I offer these templates as something that can provide an insight and may save you some time.
Copyright 2007 Open Networks Institute
On 1st November 2006, the Isle of Man’s new Companies Act came into effect. The legislation included the ability to create “Protected Cell Companies”. “A PCC is a company with an internal structure that allows for the legal segregation of assets and liabilities into different cells and a central core. This framework is designed to offer increased protection to investors in individual cells from the liabilities and creditors of other cells.”
A PCC would appear to be a viable and useful structure with many applications. Only time will reveal its competitive advantage against other types of structures and the innovative uses this structure may be used.
Copyright 2006 Open Networks Institute
Dubai is spending £140bn to transform itself into a capitalist powerhouse. The strategy being pursued in Dubai is unparalleled in history – a integrated and focussed strategy with unparalleled resources to make it happen. Dubai can build the hard infrastructure, but will the will the people, industries and businesses come? The comprehensive approach may deliver.
Copyright 2006 Open Networks Institute
Striking a balance between consumer protection, compliance costs and maintaining an effective market to raise capital for companies is very difficult. The following two articles suggest that the balance is skewed heavily toward consumer protection to the detriment of companies. Companies are simply moving to new markets where capital is easier to raise and costs are lower. If the balance is not right, the migration of companies will result in lost jobs and lost tax revenue to other financial centres.
Copyright 2006 Open Networks Institute
Over many years, I have developed a simple Microsoft Excel template to support a transaction process. Transaction types included a merger or aquisition, IPO's or private equity capital raising. This template is a starting point and needs to be customised to meet the unique requirements of each company and the specific transaction being pursued. To download the template, click on Transaction process template .This template is part of a series of templates used in a transaction process. It complements my previous post Financial forecast model: A Microsoft Excel template could become an Open Source project I will contribute the other templates as time permits. The business plan template and Investor presentation ... Read More
Markets of buyers and sellers will come “full circle”. Thousands of years ago, “transactions” between buyers and sellers were negotiated “under a tree” and face to face. As markets became larger and global, industry constructed proprietary and closed systems to match buyers and sellers. In an era of the internet, much of this infrastructure is redundant. A global internet displaces regional and proprietary communications systems. The internet will significantly impact many industries. We are likely to return to negotiating “under a digital tree”. The internet and the emerging “semantic” web will bring the people together in the global market place.
Copyright 2006 Open Networks Institute













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